CSLB Practice Test With Complete Solutions.

CSLB Practice Test With Complete Solutions. 1. The costs of running your business, including office expenses, etc., is called: a. Direct Costs b. Overhead c. A liability d. Accrual 2. Which government agency collects State Unemploy- ment Tax? a. Employment Development Department b. County Unemployment Office c. Franchise Tax Board d. Internal Revenue Service 3. Who does not need a California Contractor's State Li- cense? b. Overhead a. Employment Develop- ment Department d. Sale or installation of finished products that do not become a fixed part of a. Someone who repairs or maintains an air-condition- the structure ing unit or heat-pump unit. b. Someone who installs mobile-homes c. Someone who digs wells on the property of others d. Sale or installation of finished products that do not become a fixed part of the structure 4. Which of the following is not part of a Home-Improve- c. Twenty-Day Preliminary ment Contract? a. Mechanic's Lien Warning b. Notice of Cancellation c. Twenty-Day Preliminary Notice d. All of the above. Notice 5. Prime Contractor must pay subcontractor when? a. 10-days after Prime-contractor received payment b. When Prime-contractor receives withheld retention monies c. 30-days after completion d. As soon as subcontractor completes the work 6. The Contractor's Surety Bond is necessary for most contractors to obtain their license. This bond is in the amount of: a. $2,500 b. $7,000 c. $15,000 d. $25,000 7. How long with the CSLB hold a contractor responsible for observable defects? a. 5-years b. 4-years c. 3-years d. 2-years 8. In which of the following circumstances must a li- censed contractor provide their license number? a. On all contracts b. On all advertising c. On all "20-day Preliminary Notices" d. All of the above a. 10-days after Prime-contractor received payment c. $15,000 b. 4-years d. All of the above 9. How many classifications can a Responsible Managing d. As many as the RME can Employee apply for? a. One b. Two c. None d. As many as the RME can qualify for qualify for 10. If a contractor includes a provision in a contract for the d. The property owner and use of private arbitration and a dispute between the the prime contractor will owner and the contractor makes arbitration necessary, split the cost of the private who will bear the cost of the private arbitration? a. The California Contractor's License Board b. The property owner c. The prime contractor d. The property owner and the prime contractor will split the cost of the private arbitration 11. State Disability Insurance is paid by: a. Employees only b. Employers only c. Both employers and employees d. Neither employers nor employees 12. A contractor estimates labor and materials costs for a job to be $2,500.00. Allowing for 15% overhead and 18% profit, what should the total bid be? a. $3,222.00 b. $3,731.00 arbitration a. Employees only b. $3,731.00 c. $3,018.00 d. $3,825.00 Who is responsible for determining when the project is d. The ow